Life insurance is a very popular form of savings in France. It allows you to build up capital, while benefiting from numerous tax and social benefits. There are different formulas and life insurance contracts that are suitable for all types of profiles such as the life contract, the death contract and the life and death contract. Find out which are the best life insurance plans on the market and how to choose the one that best suits your profile.
Online euro funds: the traditional form of life insurance
The online euro fund is one of the supports of life insurance. It is an investment that guarantees the payment of the capital invested and a long-term return.
This online formula is appreciated by savers because it offers great security. Payments made on a life insurance policy managed by a fund in euros are insured by the Deposit and Resolution Guarantee Fund (FGDR). This means that the return is guaranteed, even if the euro fund suffers losses.
The managed management option is available if a client wants life insurance contracts linked to euro funds, but has no knowledge of insurance contracts. This mode of management allows the customer to designate a manager to take care of the various arbitrations between the various supports available in the contract.
Online euro funds offer advantages if the client wishes to withdraw part of his capital. The investor can choose the Suravenir Rendement 2 fund: it is a contract included in the euro funds and offers a majority and compulsory allocation for a security purpose.
Euro funds are accessible, and do not require financial knowledge. You can therefore get started, taking care to compare the payments, the performance of the insurance and the cost rates of each insurer.
Bet on managed management and arbitration for your contracts
Piloted management consists in delegating to a specialist (a wealth management adviser), the choice and management of the investments of the client’s capital in life insurance. Managed management is available in all investment vehicles (Euro funds, units of account).
Arbitrage is a means of distributing the client’s capital over different investment vehicles in certain life insurance policies. This allows the client to divide his capital to achieve his goal and to follow the financial market.
Units of account: a dynamic form of life insurance
Units of account are an investment formula offered by life insurance contracts. They are made up of stocks, bonds or diversified media, such as ETFs.
Units of account are intended for online investors and offer higher returns than other investment vehicles (like the euro fund) but also a higher risk. Units of account are life insurance financial tools, causing significant capital losses and capital gains.
The performance value of these online materials may vary, which means that the amount of the capital, or the payment at the end of the contract may be higher or lower than that paid initially.
Unit-linked units are an advantage for online investors who seek superior performance but accept the associated risk. Most life insurance contracts impose limitations when you make a payment, having a rate of 30% in units of account.
SCPIs
Real Estate Investment Companies (SCPI) are another investment vehicle in certain life insurance contracts. These financial products make it possible to invest in a rental property portfolio.
SCPIs are suitable for savers looking for a short-term investment contract within life insurance. SCPIs offer a good return and financial protection, thanks to their contract for the regular repurchase of the shares of another client’s assets.
SCPIs are less volatile than other investments or life insurance, but they have a shorter investment horizon and the rates associated with their managed management are high. Therefore, it is important to understand the risks and benefits of REITs before using it to complement your portfolio.
Advice on choosing the best life insurance plans
It should be noted that each client has their own expectations in terms of life insurance. Thus, there are many life insurance contracts to meet everyone’s needs.
The choice of a life insurance contract depends on your objectives and your risk tolerance. It is important to compare tariff rates, the past performance of the insurer and the fees charged by different insurance companies. You can use an online comparison to find the best contract.
The choice of the type of life insurance depends on the customer’s expectations :
- If you are looking for a short-term investment with stable returns, euro fund contracts are the best option;
- If you accept a certain level of risk to obtain greater returns, you should consider making an investment;
- If you are looking for a long-term investment with good financial protection, a contract with SCPI is an interesting solution.
Life insurance contracts are long-term payouts. It is important to find out about the conditions of the contracts and the risks associated with your investment with your life insurance company. Regularly assess your capital to ensure the compliance of your life insurance investment strategy, even if you have chosen managed management.
